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tv   MONEY With Melissa Francis  FOX Business  May 18, 2013 12:00am-1:01am EDT

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these scandals and all of these cross-current events. we're watching them all, each and every single one of them. it's you, it's your money, it's your life, it's your country. we are on it like no one's haven effect on the market? >>ne withelissa frances melissa: i'm mel liz is a francis, and here is who made hs ll gy today, bill gates, he's title n the title of the world's richest man today, and he's notn looking back. ck microsoft shares hitting a fresf five-year high climbing more than 2%, and bill gates owns 40 # 1 million shares of microsoft means he made $317 million. boy, am i jealous. losing money today, former jcpenney ceo left the company in ruins, and karma is biting back. he was still the boss, johnson owned 893,000 shares of jc penny meaning he lost 700 grand.
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suing, rihanna, suing top shop, a retailer in britain for 500 million, why? because they sell this t-shirt, and they never got her permission. even when they say it's not, she says it's always about "money." ♪ >> you nigh the targeting was taking place, you knew the terms, "tea party," "patriots" were used, and after you were briefed about it, that was the answer you gave us? how can we not conclude you misled the committee? >> so that was a lot of questions, sir. >> it's one. >> i did not mislead the committee. i stand by my answer then and now. melissa: oh, it is getting ugly in dc, have you noticed?
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that was congressman paul ryan tearing into outgoing irs commissioner, steven miller this morning over the irs's alleged targeting of conservative groups. the question now is will today's testimony add more fuel to the fire for the scandal? joining me for more on this, steve moore from the "wall street journal" editorial board, former senior treasury department officials, susan, and forbes columnist, he's still there, rich unger. steve moore, starting with you, you did interesting writing and research on this. this may be just the tip of the iceberg. >> that's right. by the way, let me say this, melissa, that testimony today, i didn't listen to all of it, but i listened to a lot of it, and, obviously, the part where paul ryan was grilling him. i thought he came across -- he did himself and the democrats no favors. he came across as incredibly
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arrogant, incredibly evasive, and incredible unapologetic, exactly the opposite tone that you want when you go before a congressional committee, especially when, you know, you're so guilty know, these misdeeds. now, the point i was making, you know, we talk about the tea party groups and taxpayer groups. what i found in my investigating, melissa, it was not just those, but foreign policy groups also, you know, targeted for this kind of harassment, and one -- let me make one last point, it's amazing to me that these groups still have not been approvedded for their tax exempt status. that's something republicans should encyst on that right away, immediately, every group should get the tax status now. melissa: susan, you're shaking your head. >> if the targeting was the case, doesn't mean they all deserve tax exempt status.
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we shouldn't blanket and produce results for them. the challenge is unfortunately, the congressional hearings is no place to get to the truth. it's a lot of political theater. when you want to get to fact finding and the try, you need to do it in a quieter place where people admit to wrong doing. when you put them in front of a congressional hearing, the lights on them, all the sudden, they are in a defensive pos posture, and they can't tell you, this is what we found out, this is what we want to fix it. melissa: rick, that is a good point. the only -- >> very good point. melissa: the american public feels like they don't know what's going on or have a lot of trust in government, so if you have a question and answer behind closed doors, they further feel like they don't have any transparency or insight or know what's going op. how do you balance them? >> well, for starters, i think at this point, the american public has a pretty good idea of what went on here. it's interesting. i guess we see what we want to see. i watched the same hearings steve did.
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i thought the one place where the commissioner looked shaky was the segment you showed, paul ryan, far be it from me to ever compliment representative ryan, but i have to say his questioning went to the point, and, you know what? watching it objectively, he asked the question, did the commissioner say everything should have said at the last congressional hearing? melissa: i don't know. i don't know. let's watch more and stay on your point because it's a good one. watch the exchange with congressman brady, and then we'll address it on the other side. >> who, in the irs, is responsible for targeting conservative organizations? >> sir, let me first say, i cannot speak to a given case, in that we talked about 6103, but that's -- >> this is not just one case. you know we're talking about the whole issue the inspector general put up there. >> correct. >> who is responsible for the
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targeting groups? >> again, i take exception to the concept of targeting because it's a loaded term. melissa: rick, do you stand by the statement there? he's forth right, honest, and trying the best he can? >> i actually do, and it's not my intent to defend the guy. he probably deserved to be fired. >> he was paid for the testimony. they made that point. still getting a paycheck, but go ahead. >> there's going to be an effort to paint this to be something more than it is. i read the ig report. i don't like what happened, none of us like what happened. you can really see what happened here. it was wrong. trying to draw this into something, it's not going -- it's going to prove to be a mistake. it's going to be proved to be a political mistake by the republicans who have a chance to score here on this whole thing. they are skewing it up. melissa: steve, i don't know about that, i don't know if we'll learn anything and prove it a mistake. the number one question, what they tried to get there in the last exchange there, whose idea was it? that's question one. find out how did the ball g
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rolling; right, steve? >> who knew what when; right? we don't know the answers to thc basic questions, and this couldt go op for a long time. now, i'm going to make a prediction to you. i think what you see is this rolls on. we reported on this in the "wals street journal" today that there was not just conservative organizations, but conservative donors targeted. by the way, how could he objected to term "targeted," that's obviously what they were, basically selected because of te wa their political ideology. if you look that up, the word that comes out in the decision nation is "targeting," and he did no good to himself or the democrats and made theargeted al seleblicans angrier still.ically melissa: susan, the originalcomu point of that, i want to knowssr where it started. th rick thinks he knows, and he cal poin say in a second, but i want to know whose idea it was? closer to finding that out in the hearings?
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>> that's the concern i have. i don't think so.that in e he i agree with you.hink so i want to know where it started to kno too. everybody does, the treasury, pt the president wants to know.his it was noft sanctioned. people want to believe this is e massive political conspiracy, and the truth is even senior treasury officials are not in narge of what happens a day-to-day at the irs. there's not a direct link, and the idea it was driven by the senior political officials, which i believe is what the partisan republicans want to find is not going to be the case, but we have to figure out rted, and one of the real challenges and the irs had the problems for decades. of wht melissa: uh-huh. >> it's a tough agency to manage. they have to balance dual mandates r of an enforcement agency, a dual agency, and i wat there with the last scandal froe the -- we're melissa: who is your customer? i don't feel like a customer,to?
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but a victim. who is -- is the government your feel l customer? are politicians spending the money? you are serving the customer. y rick, you think you know how it started, how is that a? you know how the ball started rolling? >> i think i do. i may find out otherwise. there could be misuse in every other administration i remember. >> that's rue. that's true. >> there is a possibility. i dealt with the irs as an attorney, and i dealt with them having gone through a massive audit once, which was incredibly unpleasant. melissa: like a colonoscopy, i'm sure. >> i'd rather have that done awake. they took a shortcut. that's a problem here. melissa: why is it a shortcut to target those people? wait.
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>> called on the allegation is made this is a few rogue agents. here is the important point*. the house ways and means committee sent an inquiry that says check into this we have allegations they were pinpointed but they said you are paranoid. melissa: we ve to go. >> we just guarded. melissa: we will debate this more. [laughter] next, state workers are recruiting people for food stamps and they claim it helps the state's economy. maybe it is. wait until you hear the reason why coming up.
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we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these ars. ♪
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♪ melissa: we have heard all about job recrters but you know the state of florida as
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recruiters to convince people to go on through the stands? fox news joins us from miami with the details. what is going on? >> these every jeffords targeting the one group that has been the most resistant to excepting food stamps, a senior citizens. >> they never thought about applying food stamps and tell today. >> you never applied? i am glad you will do it toy. it is her job to sign them up and the employee crisscross four counties looking for those eligle but not receiving the stamp benefits. it bring $6 billion per year into the economy but for some explosive growth is of a cause for concern. >> it creates a bad incentive for state government to try to get as many people on the program
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as they can because they know the federal taxpayers paid for it. one-third of florida seniors to qualify for food stamps take them it is a prime target for recruiters. >> it just feels it is the pride and said shame all bottled up together. >> they are still on the sense is rired bus driver and his wife by a dated bread and dented canned goods there is food but no insurance on the mobile home in the hurricane zone. >> there are 3.6 million people in florida receiving food stamps that number is more than double the total of five years ago. >> i know it sounds crazy with a former chief
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economist welcome back to the show. >> great to be with you. melissa: and a standby florida would do this to bring $6 billion in to the states from federal coffers that is money tt then people spend. the united states economy is good? >> it is good for florida not necessarily for the budget deficit. what we have seen increasing number of people are on food stamps. we need to cut back. one commite cut it by 2.5% melissa: people would be proud that florida doubled the people on food stamps that if you qualify you must need the help and aiming at wind into% participation if
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you qualify that is what it is therefore will be some the 5% of the people right now that qualify actlly getting a. why is that wrong? >> programs automatically a sign people up when they sign up for other assistance someone they think they don't need od stamps but help with the energy bill but then it automatically get on fd stamps with energy assistanc the even give them energy assistance to automatically qualify for the food stamps that ithe automatic program the house would cut back. melissa: if you say you qualify but don't need it what is the harm? >> having that entitlement you lose that so you face the high tax rate. the more entitlements you have a harder it is to go out into the working world and what many people who do
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need the food stamps and what some people need is a job to create jobs and figuring out why there a more employment opportunities in the united states. wide is gm go to china to make cadillacs why don't they make them here? melissa: it is taxpayer federal money directednto this program that could be directed to other programs more efficiently over time. >> or go back to the taxpayer to stimulate the economy but spending 80 billion per year. melissa: god forbid it goes back to the taxpayer. up next have the unprecedented backlog for the new range rover is in economic sign of the times. then hea of jaguar than
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drover is here to explain. tech lager is so unconcerned of the gogol's lack of privacy he showers with it. that is tim. [laughter] coress begs to difr could they cracked the
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melissa: hughes says the economy is in the dump? no one that is waiting for a new range rover. the starting price for the luxury sgb is the most $90,000 but that hasn't stopped some many peopl from wanting it that there
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is the yearlong wait less. the 2013 model sold out after a few weeks on the market is this a clever move on the of makers party drive of demand or is the economy doing bett than rethink? north american president of jaguar land rover joins me now. this is a very popular car in wall street they think it is ischium and we don't have them, because they are traitors and they say this many people want to the car. >> but the real story is they have hit the bull's-eye. the original suv in the marketplace our sales are up 28%. melissa: you didn't know if
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it would explode? capacity? is there really tear you can get the car for a year they are not hiding somewhere as of p.r. stunt? >> not many car manufacturers that aren 247 production. there will always be a little spiked shoes are frankly t we are extremely happy the way things are. melissa: you could be making more money just get another factory. people don't believe it is true recalled nebraska, maybe people in omaha would not be as excited but no matter what it is the same deal why not open another factory? >> i think that is the exaggerationealers are in the habit of getting a car
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and they are savvy and we showed the car in september there were a lot of reorders so those to get the first quarter knew that was the case but nobody expected to walk away on sunday. melissa: most americans do that if you want to buy a car if you're willing to spend 100,000 you can get the car. >> not in the premium market it is about desire if the cars are on the ground and nobody wants it. melissa: it is marketing then. >> supply cast to be demand one short we are not that far from the sweet spot. melissa: but supply and demand may not be crossing at the right point*. i was an economics major. why not raise the price?
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and shake out the market? there is a disconnect cynic in the car business you have to plan not for the tsd or the one year period. we have the 20% increase. melissa: is as range rover or is it the economy doing tter? who also sold jaguar. >> the economy is doing better especially in the premium market. this is the massive weekend the first jaguar sports car launch for the first time in over 50 years. people are already saying i want this car. melissa: said they are beating down your doors? >> they are smart people. melissa: what do you mean? there is no resale value you drive the car off a lot it lose value of around the city's image that is not the case with the range rover.
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it is the opposite but high access to a the brand and that is a recipe for success melissa: i guess the economy is doing better than i think. any plans to step up production? are the dealers mad? >> there always mad at me. they know we have a proliferation project we are just launching range rover four point* $6 billion per year. melissa: a good sign for the economy. carl icahn chalking up are rare loss of a major stakeholder in transocean and the offshore drilling a jan but they rejected a $4 per share dividend. not to a total loss however he did win a seat on the company's board shares closed down more than 1% today.
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the energy department approved a second terminal to liquefied natural gas and report energy is allowed to export 1.4 billion cubic feet of 20 more request are currently waiting for approval and oil futures climbed for the third straight session by solid economic data. rising cse and hundred dollars a barrel and privacy fears coming hand in hand now congre is stepping in. we will ask the blocker who loves it so much he showers with it on. money coming u
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♪ melissa: everyone is going over the google glass, wearable compers set to be released later this year, but here coms a slew of issues and potential for misuse. congre is now questioning google about google glass ivacy concerns. are they overreacted, and can
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they limit the technology, which is hard to sa all right, with me now is robert who has a pair of glasses with him that he probably wears everywhere, and i o mean "everywhere," even in the shower. wow. why, first of all? you tweeted that picture. you have no concern about privacy. >> my wife did, shot the photo of me. we were fooling around because, you know, one of the blogs i wanted to write was how water proof are they so i was funny, and said, oh, the shower, see if they work. melissa: they are water proof? >> nay are. they are designed to be worn outside in the rain and storms and stuff, so, of course, it made sense it survived. melissa: i don't understand the desirability. why do you want to wear your phone on your face? >> for a lot of reasons. one, i don't have to look down at the phone taking direction
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to the studio. melissa: not distracting? >> it' above the eye line. it's up here. also,,it's off most of the time. i have to impel is to come on. that was another thing i didn't understand until i got it that i have to turn it on and then say, okay, glass, take a picture. >> do you feel ridiculous? >> i do because it's nw. melissa: and, i mean, what about that? what about driving a car and everything else? a phone is a distraction so this is a super distraction in prompt of your face. >> it's less because even if you try to look at the map, i'm looking at the road ahead of me, not looking down at the navigation system or, worse, looking at the phone atrying to hide that because that's illegal. melissa: we could be having a normal conversation, and you are recording, tang pictures, anything like that?
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>> you'll know i record because the light comes on. melissa: bet you can turn it off. >> no, google made it impossible. it's always onhen i take a picture of you or i say, okay, glass, okay, glass record a video, and right now, it is. melissa: is it the android system? nobody can hack in and shut the light off? i bet they can. >> it is, nd i'm sure a hacker will figure it out on tape it, all sorts of fun things people try to do, but i could hae been recording you on the cell phone. melissa: you could, but if you wear that, people get -- >> believe me, if they are looking at you like this -- melissa: well, that may happen all the time anyway. google agreed o pay $7 million in 38 states to settle charges that it's collecting data, and google is one where people are
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nervous about their own privacy and how they collect things to make money off and resell it, so by putting -- >> first of all, there's no ads, and it's clear that google is moving the compa into a new era of commerce where we are going to talk to the glass and say, show me the starbucks or captain's deli, which i did, and it took me there. melissa: god love them, we want them to make mooey, but it is intrusive on the face, and they could collect data. the government is involved. you worry about face recognition data. some worry youut those on, you point it at someone, and, immediately, you know, you see their name, address, you know, their information, their age, what they did -- >> that's probably coming, but not in this product. the battery life is not long enough to do that. melissa: but it will be. >> next ten years. melissa: government worried about the progression of that, and should i be concerned about the progression? i don't think so. you can do that with a smart
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phone. melissa: let me try them on. >> yeah. it's two-thirds the smart phone and requires a smartphone to work. you can just touch it to turn it on. melissa: okay, now im watching myself. it is distrafficking, there's a screen blocking what i'm looking at. i can ask it a question? >> let me turn them on. melissa: okay, glass, record a video. i'm of you. i could be doing this anyone all the time im alking to. >> other than the battery going dead. a six-minuted videond battery is down 20%. that's something to be concerned with. also, you know, it only lets you shoot 10-sond video, not streaming video. it doesn't let you record a long
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video. melilissa: find me a range rove. no? it's not doing anything. am i doing it wrong. >> yeah, probably. you have to get into the okay, ass screen, google, range rover, 20 20* 13. melissa: not working. oh well. >> you have to touch it to turn it on. the you go. melissa: okay, glass, google a range rover. no network connectivity. it's blinding. what is the future for this device? do you think everybody's going toe making these and selling these? >> yeah, i saw another company building sports goggles with a dilay for bicycling so you can see all sorts of stuff like your heart rate and stuff like that. over the next ten years, there's going to be a range of these. i was at sri, where siri and the mouth and the internet came from, a big research lab, with
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augmented reality binoculars that areind blowing. melissa: you're into it? >> i already bought it. melissa: all right, tnk you so much, thanks for bringing them in. qirn sigh jones, the most influential music figure in hiory making star out of michael jackson and bono. nowhere near slowing down. i i sat down with the legend to see where the opportuitylies within music, and all the music we played today other than the one you hear now are the ones jones wrote and produced as a tribute to him. at the end of the day, it's all about money and music. there we go. ♪
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♪ melissa: won 27 gram jmy and worked with and developed some of the biggest names in music from frank to michael jackson to bono. the legendary quincey joapsz, seen and done it all, but at 80,
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he's starting a new chapter with playground sessions, bringing musical education to children. that's not all. he's a partner in spotify, now facing a major competitor as google announced just this week that it is launching its own music subscription streaming service. i had a chance to sit down with him to talk about how the business of music is changing and what he sees as the bilgest throat to the industry today. >> it's 98% piracy everywhere on the planet. the technology's too late. once we did cds and dvdsand digital, once we got into dital, cds and dvds, everyone is is, but vinyl was not like that. you can do millions of records off one cd. it's everywhere. it startedded back with fanning, on my financial now, and the con cosh yum and allen cay who
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started it all, and if they liened to him, we wouldn't be in this shape. he was 18 years old just playing around with p2p, you know, full access music, but we e are on each other's side now. melissa: his biggest concern are muse cigses working for years, but still unable to support themselves. >> for the young people i care about it, you know. i have a hard time convincing a child of mine, now, to become a musician because they don't get paid for it, they can't eat or pay their rent. melissa: his passion for children led him to partner with chris vans, his newist music adventure, play ground sessions. take away the need for expensive private lessons that most families can't afford and use popular mus to hook and inspire kids instead of traditional scales. >> you know, the basic ideas is
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it's a downloadable software to work for pc and mac. you know, right from the beginning, you go into an itunes-like store and choose the song you want to learn from, so we do arrangements of compositions of rookie level, beginner, just starting, and then you advance to more interimmediate level through advanced. melissa: it's not the only current project, not surprisingly, he's working with steven spielberg on a film to show how essential music is to ore everyday lives. >> we are planning to do a film, i don't know how much t'll help or not, called "the day all the music stopped" because my beat down in my soul i feel music will be the last thing. you can't live without it, nobody can. they have so much of it, they tick it for granted, and the first part of the film, smother with music anded radi tv, and everything, and then in the very -- at that point, we strip
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all of it out, no music, just sounds. see -- i can never pull this off in reality because somebody would have an ipod somewhere, but i have to talk to spielberg about it, get some stuff like that going. melissa: so what keeps him motivated? working with new young artists, music, spotify, but it's not really all about money. >> i come from a school of old school, with bboppers, never thought about money or fame, i mean, neve doing thriller, i didn't think about the records. do something that gives me goose bumps here, and turned out to be the biggest selling record in the history of music. my mind doesn't go that way. it's not my thing. never has been, and everying i do is i love is there, what happens. it's a good feeling. melissa: i bet it's ad good
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feeling. that was fun. next on money, the power ball jackpot hits a record $600 million, and, yes, i'm already a rationally fantasizing about winning it. you are too. we'll he fun with where you can throw all that cash next. you can never have too much money. or too many power ball tickets probably. ♪
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♪ melissa: time for fun with spare change. today, joined by a fab fe and thanks to bot of y for doing this on a friday. all right. first step. you might want to get in on this if you have not already. because there was no winner in wednesday's power ball drawing, the jackpot is skyrocketing at $600 million. wow. the most ever for a power ball. what would you do? >> all i want is a jet. i don't want to fly commercial anymore or lines to security, drink as much bottled water as i can. melissa: how much -- >> how much do they cost? >> you don't want to buy one, just fractional ownership with the cost of fuel. melissa: noing -- no. that's good, fractional ownership.
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>> there you go. it's a small portion of that, it's not -- melissa: what would you do? >> investment 432 pack avenue, $78 million, a full floor, worth a hundred. i would do that, hands down. be at the top of the world. melissa: the mot famous private island in greece, scorn yows, buy it three times over. greece is iffy. >> it is. melissa: get in on the bottom, though. you know what they do to you in taxes. yeah. >> that'd be tough. melissa: i don't know. you want to make sure you keep track of the lottery ticket if you play, especially if you win. this illinois manwas given an timatum to clean out the cookie jar, full of tickets, or she'd throw them away. good thing she didn't toss them because turned out one of th tickets was a big winner, 4.85 million. can you believe it? he didn't know it.
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it was sitting inthe cookie jar, cleaned it out, went in, and said, you know,scan them make sure before i throw them away that they didn't win, but we had 5 million dollars. >> that's actually a really nice story. it was a gift his daughter who passed away gave it to him, he found it in there. but check your tickets,people. look at what's going to happen this weekend. check the tickets. >> manage mon carelly. 70% of lottery winners blow it within a couple years. this will be one of them. the house is in foreclosure, give money to the church. melissa: could you blow $600 million? >>i'm going to help people first. >> this is smaller. melissa: i'm talking about when i win tonight or tomorrow, will i e really, blow $00 million? >> the chance in winning is 1 in 200 milion. melissa: whatever, haterment i'm not sharing with you then. the good luck theme of mcdonald's employee in washington worked at a restaurant when she looked what
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was her stolen suv, and it was. she called the police, and the 22-year-d woman who stole the car was air forced. don'you think that that woman should have made an effort to drive further away from where -- >> not necessarily. after i hjack a car, i need the big mack and all beef special, cheese, lettuce, pickle, all sesame seed bun. that's what i crief after hijacking. melia: for my death row meal, i'd get mcdons. >> i'm a mcflurry person. melissa: new yorkers are up in arms over recent controversy which may not be a surprise. an artist living in a glass apartment took very liberal arian artistic license and snapshots of the neighbors without them knowing.e woman bending over, ae took that through the window, and he's selling them. is this art or tasteless?
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>> it crosses a line. i had a building like that, and i thought somebody was looking in. taking pictures? i did move out. on your hands and knees scrubbing. >> i know this bulding, and i know people who live in the building, and i heard about the story prior to it coming out. melissa: outraged? >> they were outraged. it's invasion of the privacy, and how he did it was completely inappropriate. now, i'm glad it was not me in my apartment because what he would have seen -- melissa: really? >> would have just been -- melissa: like what? >> walking in my undistractings all the time. >> are there kids in there? >> right. melissa: good naked and bad naked. [laughter] so to close out the week, tom sullivan haswords on what's going on in washingn. >> we are funny people. generation after generation has been told that history repeats itself, so learn from it. somehow, we don't.
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every consultant preaches that when bad news strikes, get out e dirty laundry quckly and fully making headlines, but goes away faster than showing and telling only bits and pieces of the story. we all heard the admonition that the coverup is worse than the ime. why have smart peole entrusted to run the govement ignored all the sage advice? john did it in the water gate hearings. he could not recall was the favorite answer. know eric holder i sounding the same. he knows othing, just like sergeant schulz. he rescued himself from the associated press, but fort to tell ayone and doesn't know when he did it. the silver lining is that people are waking up. more and more citizens are getting lulled into trusting big government in a republic where it's healthy to ha a good dose of skepticism, and it looks like we are getting served a plait full. melissa: you bet you. thanks, tom.
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watch his show this weekend at 7 and 10 p.m. saturday, and on sunday at 7 a.m. and 7 p.m.. happy friday, everyone. thanks to you. "the willisn mor. we shall see. tomorrow night. >> government against the little guy. >> you never thought working on his own property would cost him. >>lease dante i have worked so hard for. >> they saidhey want to help the little guy. >> but the support comes with strings. >> vesting in $200,000 to apply for the permit that never arrived. >> so many have been stifled >> they may have not even thought about coming into this city. >> they also stifle ways to get around town. >> why can't everyone? >> because bureaucrats are against the little guys. tonight.

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